Novozymes (Sell, TP: DKK380.00) - Q2 beat
Q2 organic growth was c10%, well above consensus (7.5%) and our expectation (5.7%), with Household Care doing well and a strong performance in Bioenergy. The 25.9% EBIT margin was below our estimate and consensus, hit by inflationary input costs. The 2022 organic growth guidance was narrowed to 6–8% (4–8%), while the EBIT margin guidance was upped to 26–27% (25–26% due to one-off gains. We expect consensus 2022e EPS to be revised up 3–4% and a positive 1–3% share price reaction today.Novozymes is a biotechnology company based in Denmark. Co.'s business operations are centered on the development of industrial enzymes, microorganisms, and biopharmaceutical ingredients. Co. provides business-to-business biological solutions used in the production of numerous products such as biofuel, detergents, feed, and crops. Co.'s business operations are organized along two segments: the Enzyme Business which is divided into four areas, providing industrial enzymes for household care, food & beverages, bioenergy, and feed & other technical; and the BioBusiness which is home to Co.'s microorganisms and biopharmaceutical ingredients.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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